Food bank uses food stamps to boost economy

Humboldt County's food bank, Food for People, is trying to save the local economy, one food stamp at a time.

If that sounds crazy, consider a study by the U.S. Department of Agriculture's Economic Research Service that found that every dollar spent in food stamps generates $1.84 in economic activity. Similarly, a study on Moody's Economy.com found that each food stamp dollar spent generates $1.73 in economic activity.

In Humboldt County, Food for People says food stamp spending generates more than $1 million that is spent locally every month. And, that's with only about 10,000 people, or 46 percent of those eligible, enrolled in the program.

"If we could enroll all those who are eligible, we could bring another $1 million into the county to be spent at local businesses every month," said Anne Holcomb, Food for People's director. "That would obviously support local jobs and businesses."

This month, Food for People is in the midst of rolling out its "Bring a Million to Humboldt County" campaign, which seeks to get everyone who is eligible enrolled in the food stamp program. If that goal is achieved, Holcomb said Humboldt County businesses could see another $12 million circulating through the local economy this year.

The idea is pretty simple. Holcomb explained that food stamp dollars get spent in local stores and at local farmers' markets just like any other currency, creating jobs and economic activity. But, she said, they also allow their users to spend the cash they would have put toward food on other items and services available locally.

Apparently, Congress has also noticed the trend, as it put billions into food stamp programs as a part of the economic stimulus package passed earlier this year. Under the package, Humboldt County is slated to see $6.25 million in additional food stamp benefits -- an amount that could generate as much as an $11.5 million increase in local economic activity. The trick for Food for People is getting those eligible to sign up.

According to the Public Policy Institute of California, 69 percent of those eligible nationally participate in food stamp programs. That number drops to 50 percent in California, and drops further to 46 percent in Humboldt County.

Deborah Waxman, community education and outreach coordinator for Food for People, said there are a number of barriers to getting people signed up for the program, including social stigmas, geographic constraints, a sometimes challenging application process and general misconceptions about eligibility.

"Some people think if they're taking food stamps, they're taking money away from somebody else," Waxman said. "In actuality, the food stamp program is drastically under used, not just in Humboldt County but across the country. Really, this is something you've paid into just like Social Security or Medicare."

Electronic benefit transfer cards have also replaced the food stamp coupons, which Holcomb said has been a big help.

"That has really done a lot to reduce the stigma of standing there and having to flip through coupons at the checkout," she said.

Waxman also said that many eligibility requirements for the program have changed in recent years, and people who own one or two cars, a home, have tax-preferred retirement accounts or have education accounts can now be eligible.

Calls to the Humboldt County Department of Health and Human Services, which administers the food stamp program, were not returned by the Times-Standard's deadline.

In Humboldt County, Waxman said there's more than $14 million in food stamp money that goes unused annually.

With the current state of the local, state and national economies, Holcomb said it's clear more and more people are in need these days.

"The phenomenon we're experiencing here over the last few months at the food bank is we're seeing a lot of new faces who really don't know the system and don't know what's available," Holcomb said, adding that there are people now looking for help who have never had to do so in the past.

Getting people to sign up for food stamps also reduces the burden on Food for People, Holcomb said. With an influx of people looking for help in recent months, she said Food for People's resources are stretched thin.

But Food for People's outreach efforts, largely led by Americorps VISTA member Kate O'Brien, have been paying dividends.

"Before the economic downturn, I'd say we were seeing about a dozen people a month coming in to sign up (for food stamps)," Waxman said. "Then, in October or November, that number doubled."

This month, it's almost doubled again, as Waxman said 47 people have signed up for benefits.

Jasmine McCracken said she signed up for the program in 2006, having just come off maternity leave. She said she wanted to take a year off to spend with her newborn son, Darien, which food stamps helped her do.

Now, two years later, McCracken said she works full time at Food for People, but still wouldn't have enough to get by without the program.

"It's definitely a life-saver," she said. "It just helps a lot. I know there's people that are out there in the county that have a bad stigma about it, but if you're in real need, it definitely really helps. I work full time and I still need assistance. It's not like I'm living off the government, but times are tough right now and every little bit helps."

Holcomb and Waxman both said they encourage everyone who feels they need assistance to call Food for People at 445-3166 to see if they might be eligible for the program. They said staff will help walk callers through the application process, and determine if they are eligible to receive benefits.

If they can get assistance to everyone who is eligible for it, they feel they might just revive the local economy at the same time, pumping money into local businesses and saving local jobs.